Examination 0 Created on May 11, 2021 AICACC Examination Entrance into our program requires that you pass this exam. Good luck! 1 / 20 A low Return on Investment Ratio (ROI) indicates Check 2 / 20 Every business transaction affects at least ____ accounts Check 3 / 20 The process of recording in Journal is done Check 4 / 20 What is variable sampling Check 5 / 20 Rigg, Steele, and Urco Corps., all accrual-basis, calendar-year C corporations, have only votingcommon stock outstanding. Rigg owns 85 percent of Steele and 40 percent of Urco. Steele owns 50percent of Urco. Which group of corporations qualifies as an affiliated group and may join in the filingof a consolidated federal income tax return? Check 6 / 20 Goll Co. has a 25% interest in the common stock of Rose Co. and an 18% interest in the commonstock of Jave Co. Neither investment gives Goll the ability to exercise significant influence over eithercompany's operating and financial policies. Which of the two investments should Goll account forusing the equity method? Both Rose and Jave. Rose only. Jave only Neither Rose nor Jave 7 / 20 Sussman Co. prepared cash-basis financial statements for the month ended January 31. A summaryof Sussman's January activities follows:Credit sales of $5,600.Collections of $1,900 relating to January credit sales.Accrued salaries of $1,200.By what amount will Sussman's cash-basis income for the month ended January 31 increase as a resultof restating these activities to the accrual basis of accounting? $2,500 $3,700 $4,400 $4,900 8 / 20 The primary purpose of a not-for-profit organization's statement of activities is to provide relevant information to its: Check 9 / 20 During the year, Verity Co. purchased $200,000 of Otra Co. bonds at par and $50,000 of U.S.Treasury bills. Verity classified the Otra bonds as available-for-sale securities and the Treasury billsas cash equivalents. In Verity's statement of cash flows, what amount should it report as net cashused in investing activities? $0 $150,000 $200,000 $250,000 10 / 20 Accrual accounting involves accruals and deferrals. Which of the following best describes accrualsand deferrals? Accruals are concerned with expected future cash receipts and payments, while deferrals are concerned with past cash receipts and payments. Accruals are concerned with past cash receipts and payments, while deferrals are concerned with expected future cash receipts and payments. Both accruals and deferrals are concerned with expected future cash receipts and payments. Both accruals and deferrals are concerned with past cash receipts and payments. 11 / 20 A company sells DVD players for $200 per unit. The players have a unit variable cost of $160. Thecompany estimates that it will sell one home entertainment system for every four DVD players sold.Home entertainment systems have a unit variable cost of $460 and sell for $600 per unit. Thecompany's fixed costs are $90,000. Assuming that the sales mix estimate is correct, how many DVDplayers need to be sold for the company to break even? 300 500 1,200 1,500 12 / 20 Which of the following is a major difference between the just-in-time (JIT) and traditional approachesto manufacturing? The JIT approach usually involves a large number of suppliers while traditional approaches usually involve only a small number of suppliers. The JIT approach requires centralized purchasing while traditional approaches encourage purchasing decisions by production employees. The JIT approach uses a push-through system while traditional approaches use a pull-through system. The JIT approach operates with low inventory levels while traditional approaches may operate with high inventory levels. 13 / 20 Star Co. is a retail store specializing in contemporary furniture. The following information is taken fromStar's June budget:Sales $540,000Cost of goods sold 300,000Merchandise inventory–June 1 150,000Merchandise inventory–June 30 180,000Accounts payable for purchases–June 1 85,000Accounts payable for purchases–June 30 75,000What amount should Star budget for cash disbursements for June purchases? $260,000 $280,000 $320,000 $340,000 14 / 20 A company that produces a single product using a continuous process had no work in process onApril 1. During the month of April, 10,000 units were started and 9,000 completed units weretransferred. The ending work-in-process inventory was complete as to materials and 50% completeas to conversion. The cost of direct materials was $114,000, and the cost of direct labor amounted to$38,000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purposeof determining the cost of goods manufactured in April, what is the cost per equivalent whole unit? $23.22 $21.40 $20.90 $15.40 15 / 20 The expected selling price for a new product is $19.00. Management's goal is to obtain a 20%contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00per unit, what is the product's target variable manufacturing cost? $12.20 $12.80 $15.80 $18.20 16 / 20 A 20% target contribution margin is set for Duct, which is a new product with the following unit costs:Manufacturing costsVariable $12Fixed 8Selling & admin. CostsVariable $3Fixed 5What is Duct's target selling price? $18.00 $18.75 $25.00 $33.60 17 / 20 Which of the following factors most likely would be considered an inherent limitation to an entity'sinternal control? The ineffectiveness of the entity's audit committee Collusion of employees in circumventing internal controls. The lack of resources to monitor internal controls The complexity of the entity's electronic order processing system 18 / 20 Which of the following procedures would an auditor most likely perform before the balance sheet? Confirm with client's lawyer that all litigation probable of assertion has been disclosed to the auditor Obtain an understanding of the client's internal control activities Determine whether there are any liens or encumbrances on assets that have been pledged as collateral .Consider the client's plans and ability to meet imminent purchase commitments and cash flow obligations 19 / 20 Which of the following is an element of a CPA firm's quality control policies and procedures applicableto the firm's auditing practice? Acceptance of a client relationship. Professional skepticism of management. Computer information processing. .Efficiency of organizational structures. 20 / 20 Which of the following is an element of a CPA firm's quality control policies and procedures applicableto the firm's accounting and auditing practice? Engagement performance. Risk analysis. Safeguarding of assets. .Information processing. Your score is The average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz